Yesterday I stopped at the Petro Canada on the 401 between Cambridge and Guelph, and filled up at $101.9/litre. Over night last night, the price responded to petroleum finishing the day at over $100 /barrel, and by this morning the same gas was running at $109.6. That's a 7.7¢ litre. If you were looking for a car yesterday, are you looking for a smaller one today? Did you chose not to go somewhere today because of that 7.7¢?
On the same day that gas prices rose 7.7¢, British Columbia has introduced a new carbon tax of 2.4¢/litre of gasoline. It will increase over four years to about 7.2¢/litre. In four years a carbon tax will increase the price of gas by ½¢ less than it rose on it's own over night last night.
The details of this tax are somewhat complex, with money going back to taxpayers in various plans. It is also according to the BC government, revenue neutral. Revenue neutral is one of those buzz words, and while politicians want you to hear, "your overall taxes will not rise," they are also, and more importantly saying, "your taxes are not going down." Even if you decided to save taxes by cutting your carbon use, the carbon tax would necessarily rise to protect the revenue neutral aspect of the tax.
In B.C. however, revenue neutrality is irrelevant. A 7.2¢/litre carbon tax will have no practical effect. I have said it every time I write on this issue, 60¢/litre is the size required of any carbon tax if it is to be effective. Even Elizabeth May, whom I have already stated I think she's got it wrong, thinks 12¢/litre is what's required. As I point out in the article the Canadian Centre for Policy Alternatives, a leftist think(?) tank thinks the oil companies are taking 15c a litre excess profit. If the gas companies are taking excess profit more than your carbon tax, how effective will your 7.2¢ carbon tax be?
Look out B.C taxpayers, this is just the beginning.
